|
|
| *Ostroff, Fair and Company>>>Canada Taxes |
In Vancouver BC, if someone sent me a birthday present by postal mail from overseas, do I need to pay tax? |
In Vancouver BC, if someone sent me a birthday present by postal mail from overseas, do I need to pay tax? Most tangible personal property imported into Canada is subject to GST at the border upon importation (some types of property are not taxable). This includes property (gifts) received through the mail or by a courier/delvery service. Administratively if the value of the gift declared by the sender is $20.00 or less, the Canada Border Service Agency (CBSA) does not collect GST on importation. In the late 1990's the Canada Revenue Agency, which used to include the CBSA, entered into tax collection agreements with those provinces such as BC that still levy a provincial retail sales tax (known as Social Services Tax or SST in BC) These agreements covered casual importations by individuals. These agreements are now enforced by the CBSA Therefore, it is possible ,if the gift in question is arriving by mail, that you will be required to present yourself at the post office (with proper identification) and ,depending on the nature of the gift, be required to pay duties, GST and BC SST before the gift will be released to you. It is not unusual for people to be unpleasently surprised when they have to come up with some $$'s to rescue a gift (of possible dubious practical value) from the clutches of the revenuers, just to be able to send a "thank you note" for something they could have done without in the first place. Better to treat yourself to a trip and bring the gift home with you under your personal importation exemption (no duties or GST) for persons returning from travelling outside of Canada. Of course all such persons residing in BC quickly sit down and send a cheque and a note to the BC SST authorities to cover the sales tax owing on these importation, since there is no exemption in this case (right!!). My advice, if possible, is to find out what the gift is before it arrives, you may not want to pick it up. |
| Tags |
| Singapore Taxes Mexico Taxes Ireland Taxes India Taxes Germany Taxes Canada Taxes Australia Taxes Small Business Renting & Real Estate |
Finance Categories--Copyright/IP Policy--Contact Webmaster |